Effective Working Capital Management in Smes a Critique

Citation - Sunday, K.J. (2011). Effective Working Capital Management in Small and Medium Scale Enterprises (SMEs) - International Journal of melodic phrase & Management, Vol 6, No.9, Sep 2011. Introduction - This believe has been undertaken to achieve the concern objectives with regard to the counsel of functional chief city in spite of appearance SMEs in Nigeria. (1). appraise the effect of working outstanding on the solvency and fluidity of SMEs. (2). Evaluate separate methods of debt earningss other than payment out of cash. (3). Evaluate or establish an optimum working capital calendar method that will bring forward payment of debtors using short barrier sources of funds. (4). Evaluate and indicate appropriate working capital instruction for SMEs in Nigeria. The inquiry questions addressed by the study included (1). Do SMEs maintain an appropriate working capital management insurance system? (2). Is the bereavement of most SMEs a result of curt work ing capital management? (3). Is rough-and-ready working capital management of value to the survival and solvency of SMEs? The seek analysis comprised of a comparison in the midst of 2 dissimilar SMEs licitly involved in separate industry sectors, viz. the manufacturing and proceeds industry.

A comparison was then made between the both companies comprising the use of current ratios, in particular the current liquidity ratio and current asset ratios, debtor recount period, and creditor payment period. Summary The intentions of the author were too identify and foreground the magnificence of effective working ca pital management within SMEs, and how failur! e to adopt a working capital management insurance policy can and often results in business failure. The research too provided insight into other areas of interest relating to the topic. These areas could have been positive make headway and backed up with supporting data, namely (1). The problems associated with delineate the scurf and structure of an SME. (2).The current concept of existing pay structures or lack thereof....If you want to get a spacious essay, order it on our website: OrderCustomPaper.com

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